Betting giant Ladbrokes today posted its first annual loss in a decade as new taxes imposed on gambling firms cost it £50million, while 'increased marketing and product investment' also took a toll.

The firm - which is gearing up for a £2.3billion merger with Gala Coral - reported a £32.2million pretax loss in 2015 against a £37.2millon profit a year earlier.

However, despite the heavy losses, Ladbrokes shares on the FTSE 250 index jumped 5 per cent, or 6.5p higher to 128.9p in late afternoon trading as it saw an improvement in the second half of 2015 and a good start to the new year.

Losing streak: Betting giant Ladbrokes today posted its first annual loss in a decade as new taxes imposed on gambling firms cost it £50million, while 'increased marketing and product investment' also took a toll

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He added: 'While it is pleasing to report that after two quarters we have made a good start, we are only at the beginning of the journey.'

The group's 2015 revenues increased by 3.2 per cent to £1.2billion, but in the second half of the year revenues rose by 5 per cent.

Analysts at Liberum Capital said Ladbrokes' annual figures were 'broadly in line' with City forecasts and had shown 'operational improvement' in the final quarter of the year.

Ladbrokes merger deal with Gala Coral still requires regulatory clearance, with both firms likely to have to sell off more of its retail outlets to get the thumbs up from the Competition and Markets Authority.

Gala recently announced the sale of 130 bingo clubs for £241million to help pave the way for the merger.

The CMA's preliminary ruling on the proposed merger is expected to be published at the end of April.

Ladbrokes said it spent £19.8million on store closures last year and has forked out £17.6million on merger costs.

Gearing up: Ladbrokes said it spent £19.8million on store closures last year and has forked out £17.6million on merger costs

As Ladbrokes and Gala Coral seek to join forces and gain ground on market leader William Hill, Irish firm Paddy Power and Betfair completed their £5billion tie-up earlier this month.

In an update at the end of January, Paddy Power also said it saw an uplift in trading for the last seven weeks of 2015, which includes the crucial Christmas period when a host of top-flight football matches and horseracing meetings took place.

As a result, the Dublin-based firm upgraded its operating profit forecasts to €180million (£136.9million) for 2015, a rise of €16.2million on 2014. Last year, Paddy Power recorded operating profits of €163.8million.